BIM24305 - Mutual trading: members' clubs: interest paid or received

Brewery loans

Where a members' club pays interest on loans from brewery companies, or other suppliers, it may need to account for tax under ITA07/S945-960. (See AP2300 for guidance where a club which is incorporated as an industrial and provident society pays interest).

A members’ club is liable to tax for any saving and investment income it receives.

You should bear these points in mind when considering the liability of members' clubs.